Hotel Palomar

Investment Summary

KHP II acquired the historic Architects Building, a well located and under-utilized office building in the Rittenhouse Square neighborhood of Philadelphia, and undertook a $73 million redevelopment of the asset into a 4-star boutique hotel. Tax credits and other subsidies supported redevelopment at well below the cost of new construction, allowing for the creation of the first true boutique hotel in the strengthening Philadelphia market. Leveraging its distinct positioning, the property achieved a 99% RevPAR index against a competitive set that encompassed several of the leading hotels in the market, including the Ritz Carlton and Rittenhouse.